Started new job but haven't received P45 from previous employer

geek84

Good Morning

I have started a new job but haven't received my P45 from previous employer.

My new employer says I need to complete a P46 for the time being.

Does that mean I will be over taxed until I give the copy of the P45 to my new employer, or does completing the P46 mean that I would be taxed at the same rate as if I gave in the P45?

Thanks

McKneff

Your new employer is correct in asking you to complete a P46.

You wont be overtaxed, it will sort itself out as soon as the HMRC receives the P46 details and supplies your employer with a tax code.
If you do happen to pay any extra tax it will come back to you usually on your next pay run.

Congratulations on your new job, by the way

McKneff

Once you have given the P46 in you dont need to give the p45 in.
Just file it away safely at home.

geek84

Hi McKneff

Thanks for your reply.

I was under the impression that you only get the correct tax code when you supply the P45 to the new employer. I thought the P46 acts as an intermediary i.e. preventing you from having to pay emergency tax, and if you are over taxed, you could only claim back a refund from HMRC after April of that year. I take it I am wrong in saying that?

If an employee does get the correct tax code by just completing a P46, then why is there a need for giving in the P45?

Thanks in advsnce.

PlutoinCapricorn

That is a very good point Geek.

I always knew that the P46 was used when new people could not produce a P45 - this could be for several reasons - but learned recently that some employers don't wait for the P45 to arrive: they use a P46 instead.

notanewuser

geek84 wrote: »

Hi McKneff

Thanks for your reply.

I was under the impression that you only get the correct tax code when you supply the P45 to the new employer. I thought the P46 acts as an intermediary i.e. preventing you from having to pay emergency tax, and if you are over taxed, you could only claim back a refund from HMRC after April of that year. I take it I am wrong in saying that?

If an employee does get the correct tax code by just completing a P46, then why is there a need for giving in the P45?

Thanks in advsnce.

Because an employer can take the correct tax code from the P45 immediately. With a P46 they do a 'best guess' before sending it onto the tax office who then reply to you both - a longer time to get it right.

Tax will adjust in year once the correct code is applied, usually.

McKneff

geek84 wrote: »

Hi McKneff

Thanks for your reply.

I was under the impression that you only get the correct tax code when you supply the P45 to the new employer. I thought the P46 acts as an intermediary i.e. preventing you from having to pay emergency tax, and if you are over taxed, you could only claim back a refund from HMRC after April of that year. I take it I am wrong in saying that?

If an employee does get the correct tax code by just completing a P46, then why is there a need for giving in the P45?

Thanks in advsnce.

A P46 is instead of a P45. The old employer may take time to send the P45 or they get lost in the post etc. etc.
Some people get their P45 on actually leaving their old job.
So the P46 makes it easier all round for the employee by getting the tax sorted quicker, imagine relying on a P45 and not getting it for months etc. It would result in chaos.

Some people have 2 jobs so on taking the 2nd job they have to fill in the P46.

If you are in employment, any overpayment of tax comes back to you through the payroll.

If you left work say a month before the end of the tax year and couldnt take any advantage for your tax allowance for those four weeks, only then would you claim any refund of tax paid through HMRC

Jacky-f

McKneff wrote: »

Once you have given the P46 in you dont need to give the p45 in.
Just file it away safely at home.

I would disagree with this. The P45 will have accurate figures on it and as soon as this is applied by new employer you will immediately get any overpaid tax back, saves waiting months for taxman to catch up and send new codes.

Two4Tuesday

Agreed. Even if you have completed a P46, if you receive your P45 during the same tax year, you should definitely hand it to your new employer.

McKneff

Pointless handing it over to the employer, the employer would just send it to the HMRC, that too would be pointless because the HMRC would have already received a copy of the same P45 from the old employer.

See what I mean.

AP007

McKneff wrote: »

Pointless handing it over to the employer, the employer would just send it to the HMRC, that too would be pointless because the HMRC would have already received a copy of the same P45 from the old employer.

See what I mean.

No the new employer would not sent it to HMRC they would apply your info to their payroll system including what you have earnt with them in the year to date.

I have never found that people who fill in ONLY a p46 have tax matters sorted quickly at all and I have worked in payroll.

You are assuming the HMRC have had a copy from the old employer of the P45 and that's not normally the case.